Cardamom futures may remain downside. Arrivals pressure may continue to keep the trend downside. Pepper futures may trade sideways carrying a bearish bias.
Favourable weather condition in pepper growing regions mainly in Kerala is creating an anticipation of better production this year. Almost 60 – 70% crop are matured in this region. As per pepper producers, in Kerala pepper picking or harvesting will start from November first week onwards and new crop arrivals may start from 15th December in the domestic market.
Black pepper prices slashed further by Rs. 200 per quintal at the Kochi market on Friday tracking bearish cues from futures. Black pepper ungarbled is quoted at Rs 33,500 per quintal and MG-1 at Rs 34,500 a quintal.
Turmeric futures may remain below 5300 levels. After three-day closure for Diwali, the market assembled on Friday when about 4,000 bags of turmeric arrived for sale.
But for want of demand, bulk buyers kept away. Only limited buyers participated in the auctions. No exporter attended the market, due to death of a local turmeric exporter.
Other commodities:
Guar Gum and Guar seed expected to remain range bound to firm on buying activity from millers, exporters and stockiest.
Kapas futures may remain steady to firm amid as arrivals declined. Moreover, Falling open interest and rising prices is indicating that the short sellers are covering their positions.
Cotton futures on international platform finished surged higher mainly by reports of European leaders have made a deal to resolve the debt crisis. Markets also moved higher supported by USDA’s report of strong US cotton export weekly sales.
Wheat futures may trade bearish. In the physical market, after witnessing an uptrend earlier this week, dara maintained its previous level and ruled between Rs 1,120 and Rs 1,130 a quintal. Around 80 tonnes of dara variety arrived from Uttar Pradesh and the stocks were directly offloaded at the mills.
Oilseeds:
Domestic oilseeds may trade sideways getting pressure from arrivals at the spot markets & falling international prices. US soy futures stumbled, ending lower on poor export demand and a lack of crop worries.
Gulf export basis continued to erode as sales remain weak, and traders say the lack of sales is a key negative factor. CBOT Nov soybeans end down 18c, or 1.5%, to $12.17 a bushel.
Refined soy oil futures may remain sideways owing to bearish crude oil prices & absence of fresh demand from the spot markets. Refined soy oil in benchmark Indore market quoted down by Rs 2 at Rs 608 per 10 kg and in Mumbai it offered down by Rs 2 Rs 630 per 10 kg.
Courtesy: SMC Global
